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EPF savings as collaterals for loans, no withdrawals

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EPF savings as collaterals for loans, no withdrawals

My personal thought on EPF Savings

EPF is a form of retirement savings. In other words, it should just be used after retirement. Okay, I also agree that if should also be called upon in times of emergency. That’s why I am on the side of no blanket EPF withdrawal. Please be reminded that when people withdraw their funds suddenly, EPF would have to liquidate some of their investments quickly, whether or not they have profit or loss.

Imagine our very own investments, what happens when we suddenly need to withdraw the investment? Yea, we will lost all the interest or worse still, we needed to liquidate our investments at a loss. Just need to remember that the government is also bound to do something to help the ones who are really in need; in an emergency. Here’s that latest news about EPF withdrawal. Nope, the government did not allow any withdrawal but they are still doing something about it.

Article in Prime Minister Datuk Seri Anwar Ibrahim today clarified that the plan to allow Employees’ Provident Fund (KWSP) contributors to use their savings as collateral for loans would not involve any withdrawals from their savings. He said, “We won’t allow (withdrawals). This is no longer Covid-19 (pandemic). People are back to work.

“But there are one or two desperate cases, where they have savings in their EPF accounts but can’t pay for their children’s education abroad.”

“So this is for such cases, but we don’t allow them to withdraw from their EPF savings and there are fixed regulations.” Full article in

Hopefully, only those who really need it would get it

I have not yet read the mechanisms for this latest announcement. Usually these take time and is not easy to do. However, it’s way better than a blanket withdrawal for everyone. By the way, this is not during Covid-19 lockdown anymore. We are back to a growing economy even if many still like to claim the growth is not impressive at all. It’s the time to help people get back on their feet. This is not the time for wastages or expenses just because someone has access to additional funds which happened to be their retirement fund.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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